As a US expat, you may be well aware of your liability to file annual expatriate tax. But what exactly to file, how to file, and if there’s any way to claim deduction are certain crucial considerations that you’re probably deprived of. Working overseas is undoubtedly an exciting experience, but it also comes with an obligation to look after your annual expatriate tax liability. With technically intimidating deductions, exemptions, tax rates, and so other complications, making American taxation services in Singapore essential to overcome annual expat tax filing obligations easily. Not to mention that there are several hard and fast rules for complying with US expat tax filing requirements.
Here are certain important considerations that enable you to hire US expat tax services to file your expat taxes within the deadline while availing maximum deductions with years of tax filing expertise.
- If you’ve earned income or received credits, then you need to report income received from all the sources within and outside the US boundary- it’s the law
The first and most important consideration is to file US expat tax within the stated deadline. However, if your worldwide income (wages/salary from US and non-US sources, dividends, interest, and rental income) exceeds the stated threshold amount which may vary as per the filing status of expatriates, then it’s your responsibility to take immediate assistance of professional USA expat tax services in Singapore to file a federal tax return each year.
- You can rectify your previously filed expat tax return if you made any mistake in filing
As an inexperienced US expat, it’s quite obvious that you’re not a pro in filing US expat tax returns and hence, made mistakes. However, the best part is that by hiring a professional USA taxation service in Singapore, you can easily rectify those mistakes before the IRS notices them.
Major mistakes that can be rectified by US expat tax experts:
- If you’ve mistakenly failed to report some important income on your tax filing return
- If you didn’t cover the deductions or claim exemptions that you’re eligible for
In these cases, the experienced US expat tax expert takes the immediate preventive measure and files an amended tax return for that particular year in form 1040X.
- Not all Americans owe US expat tax liabilities
The US tax authority has imposed several tax exemptions, deductions, and credits to make sure that American expats don’t get taxed twice on the same income. The experienced American taxation service expert offset your foreign earned income by claiming the following exclusions:
- Foreign Earned Income Exclusion (FEIE)
- Foreign Housing Exclusion
- Foreign Tax Credit (FTC)
With the years of expertise of tax professionals offering USA taxation services in Singapore, you can save yourself from paying double tax on the same income. The US expat tax expert in Singapore will wisely claim the FTC against the income that has already been taxed by the host country.
- Claiming FTC will help you offset your us expat tax liability
If your worldwide earned income exceeds the Foreign Earned Income Exclusion (FEIE), then by claiming the FTC by filing Form 1116, you can eliminate your US expat tax liability. Therefore, the expertise and guidance of a US expat tax professional will help you reap better tax savings on every tax filing prospect.
Filing federal US expat tax returns is a complicated process and that’s why USA taxation service experts in Singapore strive hard to make the tax preparation & filing process hassle-free for expats. If you want the tax filing process to go smoother and with no complication, hiring the US expat tax professional is a wise decision.